Brunel International (BRNL: NL), the Dutch staffing firm reported revenue for the third quarter ending 30 September 2016 of €205 million, a decrease of 29% in constant currency (CC) compared with €291 million in the same period last year.

Brunel’s revenue decreased by 29% mainly due to a decrease in the Energy segment of its business. The gross margin improved from 20.2% to 22.1% as a result of the increased share of its European activities. As a result of the revenue drop, which was partly offset by cost savings, Q3 EBIT decreased to €8.1 million.

Revenue in the Netherlands decreased by 4% compared to the third quarter of 2015. This is mainly a result of the implementation of the new legislation for freelancers. All business lines are affected by this change and the number of freelancers has decreased significantly. They have seen a strong decline in headcount in June and July, followed by limited growth in the following months. Gross margin decreased from 30.2% to 29.3% due to price pressure and lower productivity. Productivity is mainly impacted by additional training initiatives.

In Germany, Brunel’s workforce continued to grow during the third quarter. As a result revenue increased by 7% compared to the third quarter of 2015. Increased price pressure, partly offset by higher productivity has resulted in a slightly lower gross margin. Germany will continue to grow in the remainder of the year.

The company expects the negative trend in Energy will continue, as well as the group’s initiatives to reduce operating costs.

The outlook for the full year remains unchanged, Brunel expects revenue between €850 million and €900 million and EBIT, excluding restructuring cost, between €30 million and EUR €million.

“We are implementing the changes in our Energy organisation in order to be ready before the beginning of the new year,” Jan Arie van Barneveld, CEO of Brunel International N.V., said. “I don’t expect recovery in the Oil & Gas market soon, but we will become more successful in other markets. Our strong performance in Europe makes me more optimistic for next year”.

In trading today, Brunel International NV set a new 52-week low when it reached €13.83, down 3.82% on the day. Over this period, the share price is down 21.26%.  Based on its current share price the company has a market capitalisation of €725.8 million.